The Horseracing Integrity and Safety Authority (HISA) and the New York Racing Association (NYRA) have reached a landmark agreement, resolving a contentious financial disagreement. This settlement paves the way for both organizations to refocus on their shared commitment to enhancing horse welfare and promoting sporting integrity within the thoroughbred racing industry.

Achieving Harmony for the Future of Horse Racing

In a significant development for the thoroughbred racing community, NYRA has agreed to withdraw its litigation pending in the Western District of Kentucky. In turn, HISA will rescind the enforcement action it initiated against NYRA on November 13. The terms of this agreement remain undisclosed, emphasizing the confidential nature of the negotiations. However, both parties have expressed optimism about moving forward collaboratively to support the sport's future.

Promoting Partnership and Progress

The settlement marks a pivotal moment in the relationship between NYRA and HISA. David O’Rourke, President and CEO of NYRA, highlighted the importance of this resolution, stating that it allows both entities to focus on the broader mission of advancing the sport. "HISA’s ongoing work is vital to the future of thoroughbred horse racing," O’Rourke noted. "This agreement resolves a narrow financial dispute and enables us to move forward together."For HISA, the settlement represents an opportunity to reinforce its partnership with NYRA. CEO Lisa Lazarus acknowledged the temporary setback caused by the financial issue but emphasized the organization's commitment to horse welfare and sporting integrity. "From the start, NYRA has been an excellent partner to HISA," Lazarus remarked. "We are delighted to resume our strong collaboration."

Addressing Financial Concerns

The dispute initially arose over the methodology used by HISA to assess fees. NYRA and Churchill Downs Inc. (CDI) jointly filed a lawsuit in Western Kentucky federal court, challenging HISA's fee structure. They contended that the authority had deviated from its own rules, which stipulate that fees should be based solely on the number of starts hosted by racetracks. Instead, the plaintiffs argued, fees were being calculated using a formula that included both purse sizes and starts, disproportionately impacting tracks with larger purses.This disagreement led to a substantial backlog in payments. According to HISA, approximately 7% of its annual budget was held up due to a $5.8 million fee dispute with NYRA and CDI. NYRA owed $3.9 million, while CDI was behind by $1.9 million. Despite these challenges, both organizations remained committed to finding a mutually beneficial solution.

Looking Ahead

As NYRA and HISA move past this financial dispute, they can now concentrate on initiatives aimed at improving the welfare of horses and maintaining the integrity of thoroughbred racing. The settlement not only resolves a specific issue but also sets a positive precedent for future collaborations. Both parties recognize the critical role they play in shaping the future of the sport and are eager to continue working together toward common goals.Churchill Downs Inc., although involved in the initial dispute, has not yet reached a similar agreement with HISA. The motion for dismissal explicitly stated that the settlement does not affect claims made by CDI. Efforts to obtain comment from CDI regarding their position on the matter have been unsuccessful. Nonetheless, the resolution between NYRA and HISA signals a promising shift in the industry's approach to regulatory compliance and partnership.